Question

C

Reducing taxes increases the amount of money in the economy because
A. the government has more money available to spend
В. banks have more money available to make loans
C consumers have more of their income available for spending
D government spending goes up to make up for less tax money coming in

Answer 1

Consumers Have More Of There income Available For Spending

Explanation: Im Taking the test right now and this is right. Hope this helps!

Answer 2

• consumers have more of their income available for spending

Step-by-step explanation:

If consumers do not pay taxes, they will have more money.

More money will lead to them buying more stuff.